Business insolvencies remain at worryingly high levels and North East firms may yet feel the fallout of recent economic shocks.
Analysis of the latest corporate insolvencies figures by the North East arm of restructuring trade body R3 shows that while there has been a month-on-month drop of almost a third between March and April - the 1,685 cases seen last month are still 82% higher than the same time last year. R3's Chris Ferguson said that a year’s worth of interest rises are still to be felt and could mean a year in which regional companies could take one step forward and one step back.
Mr Ferguson, who is head of recovery and insolvency at Gosforth-based RMT Accountants & Business Advisors, said: “Despite the monthly fall in corporate insolvency figures, total numbers are still above pre-pandemic levels, with the key reason for this being that Creditors’ Voluntary Liquidations are higher than they were in 2019. After three years of extremely challenging trading conditions, alongside a very volatile economic backdrop, it’s clear that many directors feel that they are no longer able to continue to trade their businesses.
